RRO

Railroads

If a railroad right of way crosses the land, you must add a satisfactory exception. To insure a transfer of railroad property or abandonment of the right of way, you must consult with the Company. Issues would include appropriate ICC and state approval, contiguity of grants, possible past or retroactive taxes, rails to trails rights, and ownership in the underlying fee by adjoining owners. You must consider whether the transfer or condemnation granted a fee or only an easement.

RROR01 STG

Regulatory Approval

The Company requires for its review satisfactory evidence of approval of the proposed transaction by the Interstate Commerce Commission and/or applicable state regulatory authority. Comment: Regulatory approval may be required if a railroad transfers its tracks or fee simple, or abandons its rights of way. The Company may rely upon an opinion of counsel stating that no approval is needed.

RROX01 ALTA

Railroad Easement (No Recording Data)

Rights-of-way for railroad, switch tracks, spur tracks, railway facilities and other related easements, if any, on and across the land. Comment: If the exam does not reflect a railroad grant or right of way and you believe that a railroad crosses the land, you must use this exception.

RROX02 ALTA

Railroad Easement (Shown on Survey)

Rights-of-way for railroad, switch tracks, spur tracks, railway facilities and other related easements, if any, on and across the land along the ___________ portion of the land as shown on survey dated ___________ by _______________. Comment: You must use this exception if a survey discloses railroad lines and if the record does not reflect a grant or railroad easement.

RROX03 ALTA

Railroad Easement (Recorded)

Rights-of-way for railroad, switch tracks, spur tracks, railway facilities and other related easements, if any, on and across the land along the ___________ portion of the land recorded ___________________. Comment: You must use this exception if the recorded grant or condemnation to the railroad is an easement only. You should simply except to the land described in the grant or condemnation if you cannot determine whether it is an easement or fee.

RROX04 STG

Reversionary Rights

Reversionary rights contained in the Deed from ____________ to ____________ recorded ____________. The Company makes no representation as to current ownership of this interest. Comment: If the grant to the railroad contains a reversion, you must add this exception when insuring the railroad property. You must consult with the Company before issuing any commitment or policy.

RROX05 STG

Mortgage Indenture

Mortgage Indenture from ____________ to ____________ recorded ____________, together with the terms and indebtedness secured thereby. Comment: These documents are often blanket forms with dragnet clauses covering all property then owned or later acquired.

RROX06 STG

Access is Across Railroad

Lack of right of access to the land because of any limitation on right of access over and across __________ Railroad right of way. Comment: If the only right of access is across a railroad right of way, you must use this exception unless the grant of the railroad right of way clearly retained access or unless the railroad grants unlimited access. Typically, the railroad will grant access but it will be conditional as a license only; in that case you must except to the terms of the access instrument.

RROX07 STG

Rails to Trails

Any right of the United States or the state for use and public enjoyment of the land. Comment: If a railroad line is being terminated or abandoned, the U.S. or the state may have the right to maintain the line for public use.

RROX08 STG

Retroactive Taxes

Subsequent or retroactive taxes and assessments for prior years, together with penalties and interest therein, affecting ______________________. Comment: If the policy will insure railroad property, you must consider two tax issues: (1) were all taxes for prior years paid on the lines (difficult to determine); (2) if the line was abandoned or transferred and not assessed thereafter, retroactive taxes may be owed.